Schooling Externalities, Technology, and Productivity: Theory and Evidence from U.S. States

Susana Iranzo () and Giovanni Peri

The Review of Economics and Statistics, 2009, vol. 91, issue 2, 420-431

Abstract: The literature on schooling externalities in U.S. cities and states is rather mixed: positive external effects of average education levels are hardly found while positive externalities from the share of college graduates are more often identified. We propose a simple model to reconcile this mixed evidence. Our model predicts positive externalities from increased college education and negligible external effects from high school education. Using compulsory attendance/child labor laws, push-driven immigration of highly educated workers, and the location of land-grant colleges as instruments for schooling attainments, we test and confirm the model predictions with data on U.S. states for the period 1960-2000. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2009
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Related works:
Working Paper: Schooling Externalities, Technology and Productivity:Theory and Evidence from U.S. States (2006)
Working Paper: Schooling Externalities, Technology and Productivity: Theory and Evidence from U.S. States (2006)
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